Question

MacBook Ar iey based eosting. The job-costing system a Mel and packaging he company is in the process of bidding on two Johs: Joi ody's Custom erhead alloca activity-based job-costing system. Total budgeted system and a new.ly designed inlinest cvst peoso and the budged quantity of activity driver are as follows Budgeted Gity Aetivity Driv Budgeted Overhesd 6800 Packaging Unts produced Information related to Job 220 and Job 330 follows. Job 220 incurs more batch-level so because it uses more types of materials that need to be purchased, moved, and inspected relative to Job 330 Job 220 Number of purchase orders Number of material moves Machine-hours Number of inspections Units produced 18 30 10 17 Required 1. Compute the total overhead allocated to each job under a simple costing system, where overhead is allocated based on machine-hours. using the appropriate activity drivers. simple job-costing system, especially in its bidding process. 2. Compute the total overhead allocated to each job under an activity-based costing system 3. Explain why Melody's Custom Framing might favor the ABC job-costing system over the

Answer 1

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